Buying Off the Palestinian Authority
By JONATHAN COOK
Nazareth
Israel celebrated at the weekend its success at the United Nations in forcing the Palestinians to defer demands that the International Criminal Court investigate allegations of war crimes committed by Israel during its winter assault on the Gaza Strip.
The about-turn, following furious lobbying from Israel and the United States, appears to have buried the damning report of Judge Richard Goldstone into the fighting, which killed some 1,400 Palestinians, most of them civilians.
Israeli diplomats suggested on Sunday that Washington had promised the Palestinian Authority, in return for delaying an inquiry, that the United States would apply “significant pressure” on Benjamin Netanyahu, the Israeli prime minister, to move ahead on a diplomatic process when the US envoy, George Mitchell, arrives in the region tomorrow.
But, according to Israeli and Palestinian analysts, diplomatic arm-twisting was not the only factor in the PA’s change of heart. Haaretz newspaper reported last week that, behind the scenes, Palestinian officials had faced threats that Israel would retaliate by inflicting enormous damage on the beleaguered Palestinian economy.
In particular, Israel warned it would renege on a commitment to allot radio frequencies to allow Wataniya, a mobile phone provider, to begin operations this month in the West Bank . The telecommunications industry is the bedrock of the Palestinian economy, with the current monopoly company, PalTel, accounting for half the worth of the Palestinian stock exchange.

The collapse of the Wataniya deal would have cost the Palestinian Authority hundreds of millions of dollars in penalties, blocked massive investment in the local economy and jeopardised about 2,500 jobs.
Omar Barghouti, a Jerusalem-based founder of a Palestinian movement for an academic and cultural boycott of Israel , denounced the Palestinian Authority’s move: “Trading off Palestinian rights and the fundamental duty to protect the Palestinians under occupation for personal gains is the textbook definition of collaboration and betrayal.”
The deal to establish Wataniya as the second Palestinian mobile phone operator has been at the centre of the international community’s plans to revive the West Bank ’s economy and show that Palestinians are better off under the rule of Mahmoud Abbas, the Palestinian president, than Hamas.